Cloud computing is the third party availability to computing resources, server software (physical and virtual), storage systems, configuration files, communication infrastructure, and the all files are organized at a centralized database and managed by a cloud services provider. A third-party company that provides cloud-based system, framework, application, or data storage services is known as a cloud service provider. Cloud computing has significantly changed the way of multiple industries operation by accelerating innovation and increasing the rate of business continuity. Cloud computing is important in connected cars, self-driving cars, shared mobility, deeper customer insights, and digital manufacturing. Vehicles manufactured today are no less than a supercomputer, generating a massive amount of data from the numerous sensors installed on the vehicle to obtain real-time alerts/information about tire pressure, global positioning system (GPS), temperature, and a variety of other factors. This information can be analyzed in the cloud in real time and later used for telematics, infotainment system or vehicle health display, advanced driver assistance system (ADAS), and mobility services. The automotive industry is undergoing a revolutionary change as a result of the advancement of computation and communication technologies such as cloud systems. Individual users and organizations are focusing on cloud computing, which allows them to move their data and services from local to remote cloud servers. Many businesses including Amazon, Google, Microsoft, and Dropbox have released cloud infrastructure services that have attracted millions of users. The cloud is clearly becoming a viable and systemic service to replace traditional local systems of data storage.
Global Automotive Cloud Market - Impact of Coronavirus (Covid-19) Pandemic
Even prior to COVID-19, the automotive industry faced numerous challenges such as deploying technologies in vehicles. In many markets, the market rate has fallen. Massive investments in electrification, self-driving cars, were negatively affecting revenue and profitability of automotive market. The coronavirus pandemic increased those difficulties into a crisis. Global vehicle sales have stopped, manufacturing plants have been closed, and many supply chains have come to a halt. According to an IBM report published in 2020, total vehicle sales in China fell by 80% in February 2020.The report also stated that in March 2020, factory closures in Europe resulted in production losses of over 1.9 million vehicles, affecting 1.1 million jobs. Global supply chains are being hampered by supplier shutdowns, border closures, and logistics service providers has reduced operations. The crisis has cause a huge impact on automakers to generate cash by cutting costs and increasing productivity across the entire value chain. Automobile manufacturers require to increase the investments in smarter mobility. For instance, emerging technologies such as cloud systems, artificial intelligence (AI) and 5G telecommunications should be integrated into vehicles at a higher range. These advanced technologies such as cloud, 5G, and IoT (Internet of Things) are deployed in vehicles, which is not only beneficial for customers but also for manufacturers. The technologies enhance the customer safety on road, accident alert, climate alert, and others. Moreover, the technologies enhance low operational cost and high efficiency from the manufacturers’ opinion. Thus COVID-19 has positively affected the automotive cloud market growth.
|Base Year:||2020||Market Size in 2021:||US$ 17.22 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||18.45%||2027 Value Projection:||US$ 66.73 Bn|
Airbiquity, Amazon, Bosch, CloudMade, Connexion, Continental, Denso, Ericsson AB, Harman, Intellias, LG Electronics, Microsoft, Sierra Wireless, Telenav, and Verizon
|Restraints & Challenges:||
Figure 1. Global Automotive Cloud Market Share (%), by Region, 2028
North America is expected to witness a significant growth over the forecast period, owing to rising adoption of cloud in vehicles.
The automotive industry is on the verge of massive transformation. Customers have new expectations about purchasing and owning processes of products, and customers get attracted on businesses that develops new innovative products rapidly. This requires a radical shift in how auto manufacturers frame, develop, and offer products and services, interact with customers and collaborate with governments to build new infrastructure in advanced technologies. The concern of automobile manufacturers is how to move rapidly, while maintaining a sustainable business model, in order to make the investments in automotive market. Cloud computing paves the way for the automotive industry to move rapidly and build a sustainable business model for the upcoming years. North America is the leading region in the automotive cloud market. For instance, Seattle, U.S., is the center of cloud innovation and is capturing an increasing number of mobility companies such as Mercedes, GM Cruise, Uber, Lyft, Grab, and others. Microsoft and Amazon are also actively promoting automotive cloud market, and the companies have announced a number of strategic alliances with BMW, Volkswagen, Daimler, Renault Nissan, and others. For instance, Volkswagen Group of America, Inc. based in the U.S, an automobile company announced a partnership with Microsoft in 2018 to expand the development of Volkswagen Automotive Cloud, or VW.AC, one of the largest dedicated automotive industry clouds. VW.AC is aimed to provide a smart and interoperable foundation for connected vehicles, handling data from millions of connected vehicles per day with the objective of attaining connected experiences of customers.
Figure 2. Global Automotive Cloud Market Share (%), by Vehicle Type, 2028
On the basis of vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Passenger vehicles is expected to reach a market share of 63% by 2028, exhibiting a CAGR of 19.15% between 2021 and 2028.